Mortgage listings in auction market rise 31% q-o-q in 3Q2018

/ EdgeProp
November 6, 2018 4:51 PM SGT
The total number of mortgagee sale listings in the third quarter of 2018 increased to 109, which is a 31.3% increase q-o-q, according to a report by Knight Frank Singapore. “Heightened uncertainty in the global economy, increased volatility in various asset markets, and restructuring in various sectors in Singapore contributed to the higher number of mortgagee listings,” says Sharon Lee, head of auction at Knight Frank.
The Hungry Ghost Month, from Aug 11 to Sept 9, contributed to an 7.9% q-o-q fall in the number of owner sale listings last quarter to 151, compared to 164 in 2Q2018. However, the total number of auction listings (excluding properties sold before and after auctions) was 291, a 7.4% q-o-q increase from 271 in 2Q2018.
Residential listings made up 45.4% of all the auction listings in 3Q2018. This was followed by industrial listings at 29.9% and retail listings at 17.9%.
There were 132 residential listings in 3Q2018, or a 21% q-o-q increase. But only five residential properties were successfully sold last quarter, down from eight in 2Q2018, as buyers expected lower prices as a result of the July property cooling measures, says Lee. The total transaction volume of residential properties sold under auction in 3Q2018 was $7.8 million, falling 54.5% q-o-q.
(Above, picture: ET&Co)
Industrial listings continued to trend higher in 3Q2018, increasing by 61.3% q-o-q to 87 listings. About 65% of the listings were sized less than 5,000 sq ft. “This is likely the result of owners hoping to offload their assets as the price quantum is deemed relatively affordable for buyers,” says Lee.
The recent cooling measures have lengthened the time it will take to sell properties in the open market due to a mismatch in price expectations between buyers and sellers, says Lee. “We anticipate more owners will turn to auctions to expedite the sale of their properties,” she adds.